Intel Expected To Invest Up To $5B To Expand Production In Israel
February 18, 2018 | American multinational corporation and technology giant Intel, who last year acquired Israeli startup Mobileye for $15.3 billion in Israel’s biggest high tech exit to date, is expected to announce an estimated $4 to $5 billion investment into expanding its production in Israel, Globes reports. Finance Minister Moshe Kahlon told the Knesset Finance Committee of Intel’s intentions today and said last week he had “received confirmation about this from Intel,” Globes said. Kahlon had already mentioned the planned investment last week at the Ecosystem Haifa conference, which led to speculation about the investment, and later admitted he wouldn’t have spoken about it without the approval of Intel. According to Globes, Kahlon revealed the planned investment upon receiving a positive response from Intel about a package of benefits it would receive in exchange for the investment. The agreement between Intel and the Israeli government will be presented to a committee of three including the Finance Minister Kahlon,, Minister of Economy Eli Cohen, and the head of the Israel Tax Authority. Sources told Globes they believe the package includes 20 to 30 percent of the investment in Israeli government grants and will probably include an upgrade of chip fab technology the Intel in Kiryat Gat, one of the world’s most advanced chip fabs.